Stone Forest Model for Growing Businesses

The Stone Forest Model for Growing Businesses comprises the following 7 critical elements of the management framework, driven by the main objective of profit and cash flow improvement.

1   Business Modelling

• Shape the business model to focus on core competence
• Strengthen the business model by clarifying the value proposition and instilling the value creation mindset

2   Revenue Modelling

• Identify current and potential revenue streams with their supporting cost structures
• Quantify the impact of the above on the business’ profit and cash flow
• Create a revenue model that best fits the business model to maximise profit and cash flow

3   Capacity Management

• Determine the optimum capacity the business can operate based on its present facilities and infrastructure
• Configure the capacity to generate the best returns

4   Funding Structure

• Review the funding structure, capital expenditure needs and working capital requirements of the business
• Align the funding structure to the business’ needs so as to reduce financial and business risks

5   Management Structure

• Identify and bridge management expertise gap to enable the efficient execution of business plans

6   Business Process Re-engineering

• Review operating procedures and processes to tighten systems and controls with the view to achieve the following:
  • Increase productivity
  • Prevent leakages
  • Enhance quality of service
  • Sharpen competitive edge

7   Key Performance Indicators

• Establish a tracking mechanism incorporating safety markers on the business’ profit improvement roadmap and reporting system to ensure the business stays on track